An Overview of One Asia Capital's Operations
Spot foreign currency and commodities trading involve the buying and selling of currencies, futures and commodities. The major currencies and commodities are traded at the prevailing exchange rates involving foreign exchange and commodities contracts. Unlike the physical transactions usually done with banks or money changers, these FX contracts represent huge volumes of foreign currencies based on long standing international standards and are traded among worldwide financial institutions based on internationally accepted trading procedures of the global financial markets. In turn the financial institutions, through agents (like One Asia Capital), retail these FX contracts to clients who have a perception where the currencies or commodities are headed and would like to take advantage of the market price fluctuations for potential profits.
One Asia Capital operates under the margin or leverage system trading. Specifically, clients, to be able to trade in the Foreign Currency and Commodities market, must meet a certain minimum financial criteria to assure or guarantee the performance of their contracted commitment. It is a “good faith” security, which the client is required to put up prior to initiating an order to answer for the performance of the trade. The amount needed to trade one contract, worth approximately US$ 100,000, is just 1-2% of that full contract value.
With leverage trading executed through the MetaTrader platform (currently one of the most popular trading systems worldwide), clients are provided with the platform with which they can manage the risks (via stop loss orders) or limit their losses to an acceptable percentage of the current equity level. However, even if they do leverage trading, the profit potential enjoyed would be the same as that of full margin. Thus, the return on capital would be much higher for leverage trading as compared to full margin trading.
It is important to note that One Asia Capital allows the trading of major currencies such as the Japanese Yen, British Pound, Euro, Swiss Francs, Australian Dollar, Canadian Dollar, and New Zealand Dollar against the US Dollar; And major commodities such as Gold, Silver and Oil.